Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 14th Mar 13, 9:18 AM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: Tenants forced to use payday loans to beat rent hikes
    • #1
    • 14th Mar 13, 9:18 AM
    MSE News: Tenants forced to use payday loans to beat rent hikes 14th Mar 13 at 9:18 AM
    "Shelter says renters are resorting to payday loans and dipping into their children's savings to hang onto their homes..."

    Read the full story:

    Tenants forced to use payday loans to beat rent hikes



    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

    Last edited by Former MSE Helen; 14-03-2013 at 9:42 AM.
Page 2
    • lissliss
    • By lissliss 14th Mar 13, 7:48 PM
    • 55 Posts
    • 34 Thanks
    lissliss
    I do believe there is insurance they can take out for such things.

    The problem is running a business in an immoral way is fine with items don't need (ie the margin on an iPhone), but when it involves something as basic as shelter which everybody needs they shouldn't be allowed to just keep milking it.
    Originally posted by Percy1983
    You're absolutely spot on. Affordable housing is a human right. Bring back rent controls!
    • zerog
    • By zerog 14th Mar 13, 8:09 PM
    • 2,421 Posts
    • 849 Thanks
    zerog
    You're absolutely spot on. Affordable housing is a human right. Bring back rent controls!
    Originally posted by lissliss
    Not sure if being sarcastic. In case not: rent is set at what people are willing to pay. If you can't afford your rent then someone else can, otherwise the property will be empty and the landlord will reduce the rent. If one landlord doesn't reduce the rent then others will, and their properties will get rented out.

    Shelter may be a human right, but living in London (or the town centre of a smaller town) is not.
    • jimjames
    • By jimjames 14th Mar 13, 8:35 PM
    • 13,234 Posts
    • 12,297 Thanks
    jimjames
    You're absolutely spot on. Affordable housing is a human right. Bring back rent controls!
    Originally posted by lissliss
    As per previous post, if this is serious then we can look forward to a severe lack of private rented housing. Why would anyone want to rent their house if they weren't getting a return. We'll end up with few houses being chased by large numbers of tenants and only those with the best prospects and credit rating will be able to rent.

    Just because insurance is available for certain situations doesn't mean it applies in every circumstance. Rent guarantee is possible but generally only for tenants that are most likely to be able to pay their rent - even insurance companies aren't that daft!

    Sadly this headline seems to be another example of MSE turning out Daily Mail style headlines that bear no relation to reality.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Percy1983
    • By Percy1983 14th Mar 13, 8:59 PM
    • 4,990 Posts
    • 7,824 Thanks
    Percy1983
    As per previous post, if this is serious then we can look forward to a severe lack of private rented housing. Why would anyone want to rent their house if they weren't getting a return. We'll end up with few houses being chased by large numbers of tenants and only those with the best prospects and credit rating will be able to rent.
    Originally posted by jimjames
    But if landlords started selling prices would drop less would need to rent.

    The problem is there is a shortage of housing, there needs to be more building.

    The problem is private landlords shouldn't be aloud to exploit this, yes I agree that if one person can't pay it another probably can, but as all landlords are putting prices up where are people meant to go.

    With rent caps, the poorer people will be able to afford to live and the ones who could afford a rent rise will have a little more money to spend in the economy.

    The argument of somebody else can afford it is well and good to feed greed, but what about those left behind?
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
    • HAMISH_MCTAVISH
    • By HAMISH_MCTAVISH 15th Mar 13, 12:13 AM
    • 26,123 Posts
    • 59,659 Thanks
    HAMISH_MCTAVISH
    But if landlords started selling prices would drop less would need to rent.
    Originally posted by Percy1983
    Nope.

    If landlords start selling you decrease the supply of rented houses and increase the supply of owner occupied houses.

    But you also decrease the number of renters, and increase the number of buyers.

    In fact, you force an equal number of renters out of the rental market and into the owner market. Supply and demand for both rental and owned houses remains in exactly the same equilibrium as today.

    Which is therefore completely neutral for both rents and prices.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
    • Percy1983
    • By Percy1983 15th Mar 13, 7:54 AM
    • 4,990 Posts
    • 7,824 Thanks
    Percy1983
    Nope.

    If landlords start selling you decrease the supply of rented houses and increase the supply of owner occupied houses.

    But you also decrease the number of renters, and increase the number of buyers.

    In fact, you force an equal number of renters out of the rental market and into the owner market. Supply and demand for both rental and owned houses remains in exactly the same equilibrium as today.

    Which is therefore completely neutral for both rents and prices.
    Originally posted by HAMISH_MCTAVISH
    More or less the balance remains as you say, just less feeding the greed of landlords and more getting a house for themselves.

    Will be good for many FTBs wouldn't it.
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • blckbrd
    The politics of Right to Buy and other forms of disposal has a lot to answer for.

    Some councils auction off voids that the believe will be too costly to repair. These properties tend to be conversions. A condition of sale is that the buyer doesn't live in the property and one such (that blew my mind frankly) was rented for £3k per month.

    Of course private landlords are entitled to make a profit. It's just that when it's at the expense of social housing, there's a problem that needs fixing.

    Payday loans, the Provident, the 'tally man' - these types of 'legitimate' lenders have existed for donkeys years alongside loan sharks and thugs. Just the pool of desperate customers seems to be getting bigger.
    Opinion, advice and information are different things. Don't be surprised if you receive all 3 in response.
    • lissliss
    • By lissliss 15th Mar 13, 1:43 PM
    • 55 Posts
    • 34 Thanks
    lissliss
    Not sure if being sarcastic. In case not: rent is set at what people are willing to pay. If you can't afford your rent then someone else can, otherwise the property will be empty and the landlord will reduce the rent. If one landlord doesn't reduce the rent then others will, and their properties will get rented out.

    Shelter may be a human right, but living in London (or the town centre of a smaller town) is not.
    Originally posted by zerog
    Of course living in London is not a human right, but many (working) people I know who live in London are spending at least 40 per cent of their income on rent to live in accommodation of a just about tolerable quality and as a result are struggling.

    Of course you could move say from zone 3 to zone 6 for cheaper rent, but you would then see your travel costs rise unsustainably.

    What should these people do? Quit their jobs and leave the city? Sign on as unemployed somewhere else?

    Unfortunately our economy is so London-centric that many people, especially young professionals, need to live there because there's simply very little suitable employment for them elsewhere.

    So of course there's a huge demand for private rented accommodation in places like London and people will pay grotesquely inflated rents for very basic accommodation, but it's because for many it's a choice between either working a good job there and paying for accommodation through the nose, or leaving the city and either being unemployed or working a menial job or one that they're overqualified for somewhere else.
    • Thrugelmir
    • By Thrugelmir 15th Mar 13, 3:59 PM
    • 63,414 Posts
    • 56,250 Thanks
    Thrugelmir
    Payday loans, particularly those that charge 1000%'s APR (most do..)
    Originally posted by theartfullodger
    Why don't LL's reduce their rents?

    Ah yes. They have operating expenses to cover and as a business are out to make a profit.

    However both LL's and Payday loan companies do have something in common. A lack of proper regulation and supervision. Though Payday companies do appear to have been tackled.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • worried jim
    • By worried jim 15th Mar 13, 4:01 PM
    • 10,254 Posts
    • 15,930 Thanks
    worried jim
    "Shelter says renters are resorting to payday loans and dipping into their children's savings to hang onto their homes..."


    Originally posted by MSE Helen
    If they only got rid of Sky, Iphone and 20 Mayfair lights a day they could afford it no problems.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • Takeaway_Addict
    • By Takeaway_Addict 15th Mar 13, 5:36 PM
    • 6,028 Posts
    • 6,989 Thanks
    Takeaway_Addict
    I do believe there is insurance they can take out for such things.

    The problem is running a business in an immoral way is fine with items don't need (ie the margin on an iPhone), but when it involves something as basic as shelter which everybody needs they shouldn't be allowed to just keep milking it.
    Originally posted by Percy1983
    Quite but then this is another cost passed onto the tenant.

    Its not the private landlords that are the issue, its the lack of non private housing.

    Supply and demand, supply is low and demand is high
    Last edited by Takeaway_Addict; 15-03-2013 at 5:39 PM.
    Don't trust a forum for advice. Get proper paid advice. Any advice given should always be checked
    • Takeaway_Addict
    • By Takeaway_Addict 15th Mar 13, 5:38 PM
    • 6,028 Posts
    • 6,989 Thanks
    Takeaway_Addict
    This hits the nail on the head. No-one is saying that private landlords are charities but there needs to be limits.

    I personally couldn't sleep at night if I knew that my rent increases meant that my tenants struggled to feed their kids each month (assuming that they had already cut right back to the basics). What kind of life is that for anyone?
    Originally posted by TopQuark
    What if your mortgage increased though and you were struggling?
    Don't trust a forum for advice. Get proper paid advice. Any advice given should always be checked
  • ragsandme
    Rents/pay day loans
    Rent/mortgage, food, energy bills etc should be paid for first and only then should anything else be bought. My husband and I were unemployed some years ago and like today, living in private rented property. We were only given a set amount of rent and had money deducted if there was an extra bedroom, we didn't realize this 'bedroom tax' did not apply to council tenants. We had to move a few times until we were lucky enough to find a landlord who excepted whatever rent the council paid us (very rare!) but he has retired now. The way we have survived is never ever borrowing money. At one stage we didn't even have a land line phone let alone a mobile. The first car we bought as soon as my husband found work was a cheap second hand car which, believe it or not we had saved for. We do not have sky, mobile phones, credit card debts in fact we never get anything on credit, we go without until we can pay cash and believe me its a good feeling. We finally bought a computer the other year. Another point is I strongly object to any comments being made about private tenants being this that and the other, does being in debt with a mortgage make one more honest, I don't think so!
    • Kiwi_g
    • By Kiwi_g 21st Mar 13, 7:04 AM
    • 18 Posts
    • 1 Thanks
    Kiwi_g
    I'm surprised that no one has mentioned Universal Credit.

    When this comes in (October this year possibly), local housing allowance (LHA) will be paid monthly and, most likely, direct to the tenant. Previously, there were many instances when it was paid directly to the landlord. This monthly payment will be made in arrears, around 7 days after the month end. Bearing in mind that rent is usually paid in advance, this is going to cause cash-flow problems to the tenants.

    I believe that many housing associations are budgeting for an increase in rent arrears.
  • ragsandme
    Local Housing Allowance
    Kiwi, over a decade ago LHB was paid directly to tenants and I know some people chose to spend that allowance on anything but rent.
    This will always happen. I know of people not paying their mortgage and getting into more debt to have the latest model of car etc. Both examples will lead to loss of home but I'm sure the blame will be aimed at government, banks etc, never themselves.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,188Posts Today

6,419Users online

Martin's Twitter
  • It's the weekend, it's the weekend, yay. It's that moment, when as usual, to sign off for family time. So I bid y? https://t.co/2RYRnz3fEe

  • Actually the BBC was set up to "educate, entertain and inform" so I think it is one of its responsibilities and cle? https://t.co/HMP4Q2Uptu

  • Today's FRI twitter poll: Puritanical new laws by Tories/Labour/EU/Trump/Putin (pick ur own scapegoat) dictate mode? https://t.co/3LW55tFGJ9

  • Follow Martin